What to Look For and What to Look Out For: Look for the stock to offer investors a chance to accumulate shares within 5% of its prior chart highs. Keep in mind that much of a stock's success depends on the broader market's ability to sustain a meaningful rally without encountering more damaging distributional pressure. It is very important for the stock's pullback to be contained, whereas a violation of its $38.50 pivot point would have the effect of technically negating its latest breakout, raising concerns. Conversely, if the stock finds support near/above its pivot point then begins advancing again, preferably on higher volume, then odds would favor that higher prices will follow.

Technical Analysis: It had rallied on average volume to a new 52-week high when featured in the March 2010 issue of CANSLIM.net News (read here), however it failed to immediately follow through with confirming gains above its pivot point with sufficient volume to trigger a technical buy signal.  Meanwhile, the broader market action (M criteria) turned definitively more bullish with a follow-through-day (FTD) and an increase in the number of stocks making it to Breakouts Page. CTRP went on to consolidate above its 50-day moving average (DMA) line. Its latest appearance in the Featured Stock Update section on 3/18/10 under the headline " Recent Offering And Split Increased Supply of Shares" an annotated graph included the reminder "it is important to remain disciplined. It could be accumulated under the investment system guidelines only if a proper technical buy signal occurs. The stock did not trigger a technical buy signal and only encountered resistance since the "double bottom" type base was identified."  There is no overhead supply now to act as resistance.  Ideally, one would like to see significant volume show up and a strong close to confirm a proper technical buy signal based upon a solid gain above its new pivot point illustrated above.

Ctrip.com Int'l Ltd.  (CTRP +0.30 or +0.82% to $36.92) halted its slide today with a small gain on light volume following 5 consecutive losses. It has been slumping below its pivot point toward its 50-day moving average (DMA) line. A gain above its pivot point or its most recent chart highs is still needed to confirm a fresh technical buy signal with +50% above average volume or more. Any subsequent slump below its 50-day moving average (DMA) line would raise concerns and trigger technical sell signals.

It completed an offering of additional shares on 3/03/10, shortly after it was featured under the headline "Leisure Services Firm Building Double Bottom Base" in the March 2010 issue of CANSLIM.net News.  That offering, and a recent 2:1 stock split, had the effect of increasing the supply of shares outstanding (S criteria) for this high-ranked China-based firm in the strong-performing Leisure - Services industry.  It has maintained a strong and steady annual earnings (A criteria) history. Fundamentally, its sales revenues and earnings increases have been strong in the 3 most recent quarterly comparisons and solidly above the +25% guideline (C criteria).  Another very encouraging sign with respect to the investment system guidelines is that the number of top-rated funds owning its shares increased from 51 in Mar '09 to 126 in Dec '09, which helps satisfy the I criteria.  Return On Equity is reported at 32%, well above the 17% minimum.

While the stock is currently trading within close striking range of its pivot point and all-time highs it is important to remain disciplined. It could be accumulated under the investment system guidelines only if a proper technical buy signal occurs. The stock did not trigger a technical buy signal and only encountered resistance since the "double bottom" type base was identified and it returned to the Featured Stocks list.  Now it faces some resistance up through the $39-40 area, yet it does not have a lot of overhead supply to hinder its progress.  Patient and disciplined investors will avoid the temptation to get in "early" and be on the watch for a fresh indication that more serious institutional accumulation is taking place which could lead to a sustainable advance into new high ground.

Ctrip.com International (CTRP -$2.27 or -3.11% to $70.71) slumped today and its loss on lighter than average volume led to another close under its 50-day moving average (DMA) line. Its color code was changed to yellow based on recent resilience near that important short-term average, however deterioration under its recent chart lows in the $68 area would raise more serious concerns and trigger technical sell signals. It encountered distributional pressure after it was featured n 12/01/09 in yellow in the mid-day report (read here), yet it admirably held its ground near its 50 DMA line . Fundamentally, its sales revenues and earnings increases have shown acceleration in the 3 most recent quarterly comparisons and rose solidly above the +25% guideline in the latest period ended September 30, 2009.

A follow-up study on 12/29/08 included an annotated graph under the headline "Disciplined Investors Avoided This Trip To The House Of Pain."  That was well after if was dropped from the Featured Stocks list on 6/10/09 based on weak technical action when it closed at $49.84. Technically, it has rebounded very impressively from subsequent lows in the $16 area. It has maintained a strong and steady annual; earnings (A criteria) history.  Fundamentals have shown greater sales revenues and earnings increases in the most current quarterly comparisons (C criteria), which is a very encouraging sign.  The number of top-rated funds owning its shares increased from 52 in Mar '09 to 119 in Dec '09, which helps satisfy the I criteria.

Ctrip.com International (CTRP -$0.57 or -0.77% to $73.02) posted a small loss today on lighter than average volume. Last week's slump under its pivot point raised concerns while falling on higher volume toward its 50-day moving average (DMA) line - its next important chart support level.  Near its pivot point now, it encountered some distributional pressure when recently rallying above its "max buy" price of $77.60.  Featured on 12/01/09 in yellow in the mid-day report (read here). It triggered a technical buy signal as it rose with more than +50% above average volume from a brief consolidation resembling a "high-tight-flag" pattern which it formed after repairing a late-October breach of its 50 DMA line and sprinting considerably higher. Fundamentally, its sales revenues and earnings increases have shown acceleration in the 3 most recent quarterly comparisons and rose solidly above the +25% guideline in the latest period ended September 30, 2009.

A follow-up study on 12/29/08 included an annotated graph under the headline "Disciplined Investors Avoided This Trip To The House Of Pain."  That was well after if was dropped from the Featured Stocks list on 6/10/09 based on weak technical action when it closed at $49.84. Technically, it has rebounded very impressively from subsequent lows in the $16 area. It has maintained a strong and steady annual; earnings (A criteria) history.  Fundamentals have shown greater sales revenues and earnings increases in the most current quarterly comparisons (C criteria), which is a very encouraging sign.  The number of top-rated funds owning its shares increased from 52 in Mar '09 to 114 in Dec '09, which helps satisfy the I criteria.

A FRESH ANNOTATED DAILYGRAPH WILL BE ADDED FOR THIS STOCK SOON.  CHART SERVICE IS CURRENTLY IN USE FOR TONIGHT'S Q4 WEBCAST "HOW TO NAVIGATE DURING VOLATILE TIMES"  DO NOT MISS YOUR OPPORTUNITY TO ATTEND OR VIEW THE PRESENTATION ON-DEMAND AT A CONVENIENT TIME.

Ctrip.com International (CTRP +$1.08 or +1.47% to $74.62) posted a gain today on average volume. Near its pivot point now, it encountered some distributional pressure when recently rallying above its "max buy" price of $77.60. Featured on 12/01/09 in yellow in the mid-day report (read here). It triggered a technical buy signal as it rose with more than +50% above average volume from a brief consolidation resembling a "high-tight-flag" pattern which it formed after repairing a late-October breach of its 50 DMA line and sprinting considerably higher. Fundamentally, its sales revenues and earnings increases have shown acceleration in the 3 most recent quarterly comparisons and rose solidly above the +25% guideline in the latest period ended September 30, 2009.

A follow-up study on 12/29/08 included an annotated graph under the headline "Disciplined Investors Avoided This Trip To The House Of Pain."  That was well after if was dropped from the Featured Stocks list on 6/10/09 based on weak technical action when it closed at $49.84. Technically, it has rebounded very impressively from subsequent lows in the $16 area. It has maintained a strong and steady annual; earnings (A criteria) history.  Fundamentals have shown greater sales revenues and earnings increases in the most current quarterly comparisons (C criteria), which is a very encouraging sign.  The number of top-rated funds owning its shares increased from 52 in Mar '09 to 114 in Dec '09, which helps satisfy the I criteria.

Ctrip.com International (CTRP +$2.20 or +3.00% to $21.51) gapped up today and was highlighted in yellow in the mid-day report (read here) as it hit a new all-time high. It triggered a technical buy signal as it rose with more than +50% above average volume from a brief consolidation resembling a "high-tight-flag" pattern, an advanced chart pattern which it formed after repairing a late-October breach of its 50-day moving average (DMA) line and sprinting higher. Fundamentally, its sales revenues and earnings increases have shown acceleration in the 3 most recent quarterly comparisons and rose solidly above the +25% guideline in the latest period ended September 30, 2009.

The stock's last appearance in this section was actually a follow-up study on 12/29/08 that included an annotated graph under the headline "Disciplined Investors Avoided This Trip To The House Of Pain."  That was well after if was dropped from the Featured Stocks list on 6/10/09 based on weak technical action when it closed at $49.84. Technically, it has rebounded very impressively from subsequent lows in the $16 area. It has maintained a strong and steady annual; earnings (A criteria) history.  Fundamentals have shown greater sales revenues and earnings increases in the most current quarterly comparisons (C criteria), which is a very encouraging sign.  The number of top-rated funds owning its shares increased from 52 in Mar '09 to 112 in Dec '09, which helps satisfy the I criteria.

Following its last appearance in CANSLIM.net's 5/07/08 After Market Update under the headline "Chinese Online Travel Stock Retests Prior Highs" (read here), concerns soon started to mount.  First it fell into its prior base, then it violated its 50 & 200-day moving average (DMA) lines while encountering persistent distributional pressure.  Very weak technical action was noted repeatedly, and it was dropped from the Featured Stocks list on 6/10/08.  It has since traded as much as -67.07% lower, making it worthy of one of Mr. Cramer's "house of pain" references.  CTRP was first featured on Monday, October 29, 2007 in the CANSLIM.net Mid Day Breakouts Report (read here).

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Ctrip.com Intl Ltd. (CTRP DOWN ($2.70) or -4.40% to $64.12)  gapped down as it continued pulling back towards its prior chart highs and pivot point. CTRP sports very strong ranks; its Earnings Per Share (EPS) is a 98 and it Relative Strength (RS) rating is a 97.  The number of top-rated funds owning an interest rose from 48 in Jun '07 to 95 in Mar '08, which shows increasing institutional demand (the I criteria).  Concerns would be raised by any weakness leading to a close under its old chart highs near $62-63 area which would have the effect of technically negating its latest breakout.

This stock was recently featured in the May 2008 issue of CANSLIM.net News (read here) with a $63.10 pivot point and a $66.26 maximum price. Within a few days, the stock quickly jumped +12% above its pivot point. Then it pulled back and is currently trading below its maximum buy price which means that CTRP is currently offering investors another chance to accumulate this stock within the proper guidelines. Always limit losses per the 7-8% sell rule, and never hold a stock if it falls more than that from your purchase price. 

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CANSLIM.net Profile: Ctrip.com International, Ltd. and its subsidiaries provide travel related services including hotel reservation, air-ticketing, packaged-tour services, as well as Internet advertising and other related services. It sells air tickets for Chinese airlines, including Air China, China Eastern Airlines, China Southern Airlines, and Shanghai Airlines, as well as international airlines operating flights originating from cities in China, such as United Airlines, Northwest Airlines, Air Canada, DragonAir, and Lufthansa. The company also offers independent leisure travelers bundled packaged-tour products, which include air-ticketing and hotel reservations; sells travel guidebooks, which provide information for independent travelers; VIP membership cards that allow cardholders to receive discounts from restaurants, clubs, and bars. The company markets its products and services through on-site promotions, cross-marketing, online marketing, and advertising. The company was founded in 1999 and is based in Shanghai, the People's Republic of China.  CTRP resides in the the Medical-products group which is presently ranked 144th on the 197 Industry Groups list. However, there are several other high-ranked stocks that reside in this group which help overcome this shortfall. There were 48 top-rated funds with an ownership interest in Jun '07, yet that number jumped to 94 as of March '08, offering a very strong sign of increasing institutional interest (I criteria). Also, the stock has 50 million shares in the float, and having a small supply of shares is a characteristic that most of the greatest stock market winners exhibited before they enjoyed explosive moves up.  Its quarterly and annual earnings growth history is strong, easily satisfying both the "C" and "A" criteria.